Access Hospitality has published a guide for US hotels on revenue per available room (RevPAR), covering what it means, how to calculate it and how to improve it.
The data challenge
Citing its AI in Hospitality 2025 report, Access Hospitality says hotel managers use an average of five systems to run operations, and 60% say the data those systems produce is incomplete or missing, making confident revenue decisions harder.
What RevPAR measures
RevPAR is the room revenue a hotel produces for every available room in a period, sold or not. ADR counts only sold rooms, while occupancy counts rooms regardless of price. The guide notes US hotels finished 2025 at 62.3% occupancy and a $160.54 ADR, giving a RevPAR of $100.02, the first full-year fall in occupancy and RevPAR since 2020: rate held, occupancy did not.
Why it beats occupancy alone
A 100-room hotel at 70% occupancy and $200 ADR earns a RevPAR of $140. One at 90% occupancy and $150 ADR earns $135: busier on every report, yet earning less per room. Heavy discounting can fill rooms while leaving money on the table.
Two formulas
- Occupancy multiplied by ADR: 75% at $180 gives $135. Best for daily tracking from the morning report.
- Total room revenue divided by available room nights: $81,000 across 600 room nights (20 rooms over 30 nights) also gives $135. Best for monthly reviews and benchmarking.
The guide recommends using a PMS report or template to avoid period-matching errors in manual calculations.
What good looks like
There is no single benchmark. A good RevPAR depends on market, chain scale and comp set, so trends and comparison with competitors matter more than an absolute figure.
Improving it
Access Hospitality outlines steps around pricing, distribution, segmentation and connected data to lift RevPAR without sacrificing rate integrity.
Originally published by Access Hospitality: Access Hospitality Explains RevPAR: Meaning, Formulas and How to Improve It
